BPI Responds to NYDFS Request for Comments Concerning Presumption of Control of NY-Charted or Licensed Institutions

Ladies and Gentlemen:

The Bank Policy Institute[1] appreciates the opportunity to comment on the request for public comments by the New York State Department of Financial Services relating to the circumstances in which an investment manager, together with its subsidiaries and affiliates (collectively, an “Investment Manager”), through a variety of investment companies registered under the Investment Company Act of 1940, other pooled investment vehicles and institutional accounts that are sponsored, managed or advised by the Investment Manager (collectively, “Managed Funds”), would be presumed to control a DFS-Regulated Entity[2] under the New York Banking Law.[3] BPI supports the DFS’s efforts to address this important issue and to clarify the application of the NYBL’s control provisions to Investment Managers.[4] BPI believes that the comments and recommendations provided below will assist the DFS in applying the NYBL fairly and consistently while avoiding any negative effects on the administrative efficiency or competitive position of DFS-Regulated Entities.

To read the full comment letter, please click here, or click on the download button below.

[1] The Bank Policy Institute is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost two million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.

[2] DFS-Regulated Entities for these purposes include (1) a New York-Chartered bank, trust company, stock-form savings bank or stock-form savings and loan association; (2) a New York-licensed lender, sales finance company, insurance premium finance agency, budget planner, mortgage banker, mortgage broker, mortgage services or student loan services; and (3) any entity that controls or is presumed to control (in each case, within the meaning of the applicable provisions of the NYBL) any of the foregoing.

[3] DFS, Request for Public Comments Regarding the Presumption of Control of a New York- Chartered or Licensed Depository or Non-Depository Institution, dated Dec. 20, 2022, available at https://www.dfs.ny.gov/industry_guidance/industry_letters/il20221220_req_public_comments_presumption_control

[4]Investment Managers acquire shares of DFS-Regulated Entities(or of companies that control such organizations and entities) through Managed Funds.